For decades, careers were built around job titles. Employees advanced their career by climbing hierarchies defined by fixed roles, and learning was tailored to job-specific tasks.
But as technology evolves and industries transform, that model is breaking down. Here, Jen Tait explores the emergence of a more agile, future-ready approach: the skills-based organisation.
At its core, a skills-based organisation (SBO) focuses not on job roles, but on the skills people have, or need to develop, to deliver value. Instead of asking, “What is your job title?” companies are now asking, “What can you do, and what can you learn next?”
Why the Shift?
Several forces are driving this transformation:
Work is changing faster than jobs: According to the World Economic Forum, half of all employees will need reskilling by 2025 due to automation and AI.
Talent shortages are growing: Traditional recruitment methods often exclude capable individuals who don’t match narrow job criteria. A skills-first lens opens the door to broader talent pools.
Employees want mobility: People no longer want to stay in a single role for years. Internal mobility, powered by skill transparency, is key to retention.
As a result, forward-thinking companies are reorganising around skills. Organisations like Unilever, IBM, and Schneider Electric are leading the charge, using AI-driven skills platforms, internal talent marketplaces, and learning pathways that prioritise potential.
What This Means for L&D
The rise of SBOs has profound implications for Learning & Development.
1. Learning is becoming more personalised: Instead of assigning the same compliance modules to everyone, L&D teams are now curating individual skill-building journeys. Adaptive learning platforms use skills data to recommend relevant content, helping people build exactly what they need, when they need it.
2. Learning is tied to business strategy: As explained in the July edition of Northern Insight, L&D is no longer a support function-it’s a strategic driver of transformation. If an organisation wants to enter a new market, adopt a new technology, or improve customer experience, it must build the required skills internally. This means L&D must understand business goals and translate them into agile learning programs.
3. Skill visibility becomes essential: Many companies still don’t know what skills exist within their workforce. Skills-based organisations invest in platforms that map skills at scale, often using AI and self-assessments. This data not only informs learning but supports smarter workforce planning and internal hiring.
4. Managers must become skill coaches: Leaders need to shift from task delegators to capability builders. This requires training managers to have meaningful development conversations, give real-time feedback, and spot hidden talents on their teams.
Challenges on the Path
Transitioning to a skills-based model isn’t without hurdles. There are concerns about data accuracy and employee privacy. And most significantly, it requires a cultural shift, from valuing titles and tenure to celebrating growth and adaptability.
But the risks of not changing are greater. Rigid job structures can limit innovation and leave organisations flat-footed in the face of disruption.
A More Equitable Model of Work?
One of the most powerful aspects of a skills-first approach is its potential to promote equity and inclusion. By decoupling opportunity from degrees, job titles, or networks, SBOs open the door to talented individuals who might otherwise be overlooked. Apprenticeships, bootcamps, and self-directed learning can carry as much weight as formal education, if skills are the currency.
As more companies make this shift, the role of L&D will only grow in importance. The challenge isn’t just to deliver content, it’s to help people grow, adapt, and thrive in a world where roles change but skills endure.
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